Do you have a tax-efficient investment strategy to build after-tax wealth before and during retirement? You can schedule an appointment with one of our Retirement Experts to look at your situation and help you plan for your future. Call us at (920) 544-0576 or go to https://www.safeguardinvest.com/contact.
Dividends are a good thing, right?
Yes and no. A dividend is a profit the company is passing to shareholders. It's generally good to invest in companies that turn a profit (and sometimes good to invest in companies that don't turn a profit...)
The problem is that a dividend causes a tax drag. Specifically in taxable accounts.
A dividend is a taxable event in the eyes of the IRS. Every year a dividend comes and is reinvested, that tax can no longer compound for your future.
Over time, the taxation of dividends is a tax on your future.
Now, we don't have an issue with dividends if they are in tax-protected accounts. Only when they are in taxable or non-qualified accounts.
Dividend tax drag is a cost that is often overlooked by retirees. But as we show in this video, it is a cost that cannot be forgotten if you're interested in building a better plan.
#Dividends #RetirementIncomePlanning #TaxEfficientInvesting
- - - - - - - - - - - - - - - - -
Always remember, "You Don't Need More Money; You Need a Better Plan"
🍿 Subscribe to our channel: https://www.youtube.com/channel/UCVMA...
🏆 Join our 'Retirement Mastery' Facebook Group: https://bit.ly/retirement-mastery-group
📈 Talk with us about your retirement plan here: https://www.safeguardinvest.com/contact
📚 The New 60/40: How the Next Generation of Retirees Can Achieve Radical Financial Freedom through Better Safe Investing - https://www.amazon.com/New-60-Generation-Financial-Investing/dp/B08H6TCMFN
Safeguard Wealth Management is a Registered Investment Advisor in the State of WI. Safeguard Wealth Management is not an insurance provider. All content on Youtube is for informational purposes only and should not be taken as personal advice for your situation. You can read more disclosures at https://www.safeguardinvest.com/fiduciary
0 Comments